微观经济学英语试题

PAGE

1

PAGE

3

Microeconomics1MultipleChoiceTest

Springterm2002

Attemptallquestions.

(Ifneededinanyquestion,assumethatgood1isrepresentedonthehorizontalaxis.)

Theprincipleofcompletenessmeans

a.theconsumeralwaysprefersonegoodtoanother

b.theconsumeralwaysprefersonegoodtotheotherorisindifferentbetweenthem

c.theconsumerprefersmoregoodstoless

d.theconsumerismaximisingtheirutility

e.theconsumercannotmakeachoicebetweentwogoods

Theprincipleoftransitivitymeans

a.goodAispreferredtogoodB

b.ifgoodAispreferredtoB,andBtoC,thenAmustbepreferredtoC

c.moreofgoodAispreferredtogoodBandtogoodC

d.goodAisalwayspreferredtoBifBispreferredtoC

e.goodAprovidesmoreutilitythanBandBmorethanC

Indifferencecurvescancross

a.iftheincomeeffectoutweighsthesubstitutioneffect

b.ifthesubstitutioneffectoutweighstheincomeeffect

c.forGiffengoods

d.forinferiorgoods

e.noneoftheabove,theycannotevercross.

Indifferencecurvesslopedownbecause

a.oftheprincipleofnon-satiation

b.oftheprincipleofcompleteness

c.moreofagoodisdemandedasthepricefalls

d.oftheprincipleoftransitivity

e.noneoftheabove

Themarginalutilityofincomeprobably

a.increasesasincomeincreases

b.decreasesasincomeincreases

c.increasesasincomeincreasesbutatadecreasingrate

d.decreasesaspricesrise

e.noneoftheabove

Theeffectofa10%riseinbothpricesandmoneyincomeisto

a.shiftthebudgetconstraintoutby10%

b.shiftthebudgetconstraintinwardsby10%

c.rotatethebudgetlineaboutapointonthehorizontalaxis

d.leavethebudgetconstraintunchanged

e.noneofthese

Compensatingaconsumerfortheeffectofapricerise

a.eliminatesbothincomeandsubstitutioneffects

b.eliminatestheincomeeffect,leavingthesubstitutioneffect

c.eliminatesthesubstitutioneffect,leavingtheincomeeffect

d.eliminatesneitherincomenorsubstitutioneffect

e.noneofthese

Whichofthefollowingstatementsaboutthesubstitutioneffectistrue?

a.Itcanbepositive

b.Italwaysexceedstheincomeeffect

c.Itoperatesintheoppositedirectionfromtheincomeeffectforaninferiorgood

d.Itoperatesintheoppositedirectionfromtheincomeeffectforanormalgood.

e.Noneofthese.

Foraninferiorgood

a.ariseinpriceleadstoareductionindemand

b.ariseinpriceleadstoariseindemand

c.afallinpriceleadstoariseindemand

d.ariseinincomeleadstoariseindemand

e.ariseinincomeleadstoafallindemand

Abudgetlineequationisgivenbyp1x1+p2x2=M.Theinterceptofthebudgetlineonthevertical(x2)axisis

a.M/p1

b.–M/p2

c.p2/p1

d.–p2/p1

e.M/p2

Givenademandequationq=100–5pandanaveragepriceof10,thedemandelasticityis

a.–2

b.–5

c.–3/5

d.–1/2

e.–1

Thedemandequationsfortwoconsumersareq1=60–pandq2=40–2p.Themarketdemandequationis

a.q=20–p

b.q=60/40–2p

c.q=100–2p

d.q=60–3p

e.q=100–3p

Iftwogoodsarecomplements

a.ariseinthepriceofgood1leadstoafallindemandforgood2

b.ariseinincomeleadstoafallindemandforbothgoods

c.afallinthepriceofgood1leadstoafallindemandforgood2

d.ariseinthepriceofgood1leadstoariseindemandforgood1

e.noneoftheabove

Thegovernmentimposesataxonagood,whichreducesdemand.Thesizeofthetaxrevenueis

a.equaltothelossofconsumersurplus

b.lessthanthelossofconsumersurplus

c.morethanthelossofconsumersurplus

d.equaltothegainofconsumersurplus

e.noneofthese

Aconsumerisgivenafoodvoucherworth£10,whichcannotbere-sold.Theconsumer’stotalexpenditureonfoodwill

a.rise

b.riseby£10

c.risebylessthan£10

d.fall

e.anyoftheabovearepossible

GiventhedemandcurveqD=400–4pandsupplycurveqS=100+2p

a.theequilibriumisq=50,p=200

b.theequilibriumisq=100,p=50

c.theequilibriumisq=500,p=60

d.theequilibriumisq=300,p=6

e.noneoftheabove

Themarginalrateofsubstitutionis

a.theslopeofaconsumer’sindifferencecurve

b.theslopeofaconsumer’sbudgetline

c.theareaunderaconsumer’sindifferencecurve

d.theareaofaconsumer’sbudgetline

e.noneoftheabove

Ifdemandforagoodiselastic

a.ariseinpriceincreasesexpenditureonthatgood

b.afallinpriceincreasesexpenditureonthatgood

c.afallinpricehasnoeffectonexpenditure

d.ariseinpricehasnoeffectonexpenditure

e.noneoftheabove

Theconsumer’sequilibriumiswhere

a.marginalutilityiszero

b.themarginalrateofsubstitutioniszero

c.theslopeofthebud